diff --git a/examples/virtual-rechunk/Dockerfile_virtualizarr b/examples/virtual-rechunk/Dockerfile_virtualizarr
new file mode 100644
index 000000000..d1793c6a7
--- /dev/null
+++ b/examples/virtual-rechunk/Dockerfile_virtualizarr
@@ -0,0 +1,59 @@
+# Python 3.11
+FROM python:3.11-slim-buster
+
+
+RUN apt-get update \
+    # Install aws-lambda-cpp build dependencies
+    && apt-get install -y \
+      g++ \
+      make \
+      cmake \
+      unzip \
+    # cleanup package lists, they are not used anymore in this image
+    && rm -rf /var/lib/apt/lists/* \
+    && apt-cache search linux-headers-generic
+
+ARG FUNCTION_DIR="/function"
+
+# Copy function code
+RUN mkdir -p ${FUNCTION_DIR}
+
+# Update pip
+# NB botocore/boto3 are pinned due to https://github.com/boto/boto3/issues/3648
+#    using versions from https://github.com/aio-libs/aiobotocore/blob/72b8dd5d7d4ef2f1a49a0ae0c37b47e5280e2070/setup.py
+#    due to s3fs dependency
+RUN pip install --upgrade --ignore-installed pip wheel six setuptools \
+    && pip install --upgrade --no-cache-dir --ignore-installed \
+        awslambdaric \
+        botocore==1.29.76 \
+        boto3==1.26.76 \
+        redis \
+        httplib2 \
+        requests \
+        numpy \
+        scipy \
+        pandas \
+        pika \
+        kafka-python \
+        cloudpickle \
+        ps-mem \
+        tblib
+
+# Set working directory to function root directory
+WORKDIR ${FUNCTION_DIR}
+
+# Add Lithops
+COPY lithops_lambda.zip ${FUNCTION_DIR}
+RUN unzip lithops_lambda.zip \
+    && rm lithops_lambda.zip \
+    && mkdir handler \
+    && touch handler/__init__.py \
+    && mv entry_point.py handler/
+
+# Put your dependencies here, using RUN pip install... or RUN apt install...
+
+COPY requirements.txt requirements.txt
+RUN pip install --no-cache-dir -r requirements.txt
+
+ENTRYPOINT [ "/usr/local/bin/python", "-m", "awslambdaric" ]
+CMD [ "handler.entry_point.lambda_handler" ]
diff --git a/examples/virtual-rechunk/README.md b/examples/virtual-rechunk/README.md
new file mode 100644
index 000000000..15cc954ed
--- /dev/null
+++ b/examples/virtual-rechunk/README.md
@@ -0,0 +1,55 @@
+# Rechunk a virtual dataset
+
+This example demonstrates how to rechunk a collection of necdf files on s3 into a single zarr store.
+
+Most rechunking workflows can be conceptualized in two steps,
+which typically provides greater flexibility than combining them.
+The first (staging) step is mostly embarassingly parallel and prepares the input data.
+In this example, we construct a virtual zarr dataset using `lithops`,
+but we could incorporate data transfer and reprocessing as part of staging.
+
+The second (rechunking) step rechunks the staged data.
+Here, we rechuck the virtual zarr using `cubed`,
+but in theory, `dask` or other map-reduce frameworks may be used. 
+
+
+## Credits
+Inspired by Pythia's cookbook: https://projectpythia.org/kerchunk-cookbook
+by norlandrhagen.
+
+Please, contribute improvements.
+
+
+1. Set up a Python environment
+```bash
+conda create --name virtualizarr-rechunk -y python=3.11
+conda activate virtualizarr-rechunk
+pip install -r requirements.txt
+```
+
+2. Set up cubed executor for [lithops-aws](https://github.com/cubed-dev/cubed/blob/main/examples/lithops/aws/README.md) by editing `./lithops.yaml` with your `bucket` and `execution_role`.
+
+3. Build a runtime image for `cubed`
+```bash
+export LITHOPS_CONFIG_FILE=$(pwd)/lithops.yaml
+export CUBED_CONFIG=$(pwd)/cubed.yaml
+# create a bucket for storing results
+export BUCKET_URL=s3://wma-uncertainty/scratch
+lithops runtime build -b aws_lambda -f Dockerfile_virtualizarr virtualizarr-runtime
+```
+
+4. Stage the virtual zarr using `lithops`
+```bash
+python stage-virtual-zarr.py
+```
+
+5. Rechunk the virtual zarr with `cubed` (using `lithops`)
+```bash
+python rechunk-virtual-zarr.py
+```
+
+## Cleaning up
+To rebuild the `lithops` image, delete the existing one by running
+```bash
+lithops runtime delete -b aws_lambda -d virtualizarr-runtime
+```
diff --git a/examples/virtual-rechunk/cubed.yaml b/examples/virtual-rechunk/cubed.yaml
new file mode 100644
index 000000000..b4d2173c0
--- /dev/null
+++ b/examples/virtual-rechunk/cubed.yaml
@@ -0,0 +1,7 @@
+spec:
+  work_dir: "s3://cubed-$USER-temp"
+  allowed_mem: "2GB"
+  executor_name: "lithops"
+  executor_options:
+    runtime: "virtualizarr-runtime"
+    runtime_memory: 2000
diff --git a/examples/virtual-rechunk/lithops.yaml b/examples/virtual-rechunk/lithops.yaml
new file mode 100644
index 000000000..3740ac605
--- /dev/null
+++ b/examples/virtual-rechunk/lithops.yaml
@@ -0,0 +1,14 @@
+lithops:
+    backend: aws_lambda
+    storage: aws_s3
+
+aws:
+    region: us-west-2
+
+aws_lambda:
+    execution_role: arn:aws:iam::807615458658:role/lambdaLithopsExecutionRole
+    runtime: virtualizarr-runtime
+    runtime_memory: 2000
+
+aws_s3:
+    storage_bucket: cubed-thodson-temp
diff --git a/examples/virtual-rechunk/rechunk-virtual-zarr.py b/examples/virtual-rechunk/rechunk-virtual-zarr.py
new file mode 100644
index 000000000..7c4cbee25
--- /dev/null
+++ b/examples/virtual-rechunk/rechunk-virtual-zarr.py
@@ -0,0 +1,35 @@
+# Rechunk a virtual zarr on s3 into a single zarr store using xarray-cubed.
+#
+# Prior to running this script, create the virtual zarr with
+# > python create-virtualzarr.py
+#
+# NOTE: In jupyter, open_dataset seems to cache the json, such that changes
+# aren't propogated until the kernel is restarted.
+
+import os
+import xarray as xr
+
+
+bucket_url = os.getenv("BUCKET_URL")
+
+combined_ds = xr.open_dataset(
+    f"{bucket_url}/combined.json", # location must be accessible to workers
+    engine="kerchunk",
+    chunks={},
+    chunked_array_type="cubed",
+)
+
+combined_ds['Time'].attrs = {}  # otherwise to_zarr complains about attrs
+
+rechunked_ds = combined_ds.chunk(
+    chunks={'Time': 5, 'south_north': 25, 'west_east': 32},
+    chunked_array_type="cubed",
+)
+
+rechunked_ds.to_zarr(
+    f"{bucket_url}/rechunked.zarr",
+    mode="w",
+    encoding={},  # TODO
+    consolidated=True,
+    safe_chunks=False,
+)
diff --git a/examples/virtual-rechunk/requirements.txt b/examples/virtual-rechunk/requirements.txt
new file mode 100644
index 000000000..368494255
--- /dev/null
+++ b/examples/virtual-rechunk/requirements.txt
@@ -0,0 +1,11 @@
+boto3
+cftime
+cubed
+cubed-xarray
+h5netcdf
+h5py
+kerchunk
+lithops
+s3fs
+virtualizarr
+xarray
diff --git a/examples/virtual-rechunk/stage-virtual-zarr.py b/examples/virtual-rechunk/stage-virtual-zarr.py
new file mode 100755
index 000000000..4af14effa
--- /dev/null
+++ b/examples/virtual-rechunk/stage-virtual-zarr.py
@@ -0,0 +1,63 @@
+# Use lithops to construct a virtual zarr from netcdf files on s3.
+
+import fsspec
+import lithops
+import os
+import xarray as xr
+
+from virtualizarr import open_virtual_dataset
+
+bucket_url = os.getenv("BUCKET_URL")
+
+fs_read = fsspec.filesystem("s3", anon=True, skip_instance_cache=True)
+files_paths = fs_read.glob("s3://wrf-se-ak-ar5/ccsm/rcp85/daily/2060/*")
+file_pattern = sorted(["s3://" + f for f in files_paths])
+
+# Truncate file_pattern while debugging
+file_pattern = file_pattern[:4]
+
+print(f"{len(file_pattern)} file paths were retrieved.")
+
+
+def map_references(fil):
+    """ Map function to open virtual datasets.
+    """
+    vds = open_virtual_dataset(
+        fil,
+        indexes={},
+        loadable_variables=['Time'],
+        cftime_variables=['Time'],
+    )
+    return vds
+
+
+def reduce_references(results):
+    """ Reduce to concat virtual datasets.
+    """
+    combined_vds = xr.combine_nested(
+        results,
+        concat_dim=["Time"],
+        coords="minimal",
+        compat="override",
+    )
+    
+    return combined_vds
+
+
+fexec = lithops.FunctionExecutor(config_file="lithops.yaml")
+
+futures = fexec.map_reduce(
+    map_references,
+    file_pattern,
+    reduce_references,
+    spawn_reducer=100,
+)
+
+ds = futures.get_result()
+
+# Save the virtual zarr manifest
+ds.virtualize.to_kerchunk(f"combined.json", format="json")
+
+# Upload manifest to s3
+fs_write = fsspec.filesystem("s3", anon=False, skip_instance_cache=True)
+fs_write.put("combined.json", f"{bucket_url}/combined.json")